Yields on Fannie Mae and Freddie Mac mortgage bonds surge

08/9/2011 | Bloomberg · MarketWatch

Standard & Poor's decision to cut the credit rating of Fannie Mae and Freddie Mac as well as the federal government led to a jump in yields on the government-sponsored entities' home-loan bonds. The wider spreads generally are "based on uncertainties regarding prepayments and supply, not credit-based downgrade fears," according to Walt Schmidt, a mortgage strategist at FTN Financial.

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Bloomberg · MarketWatch

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